Reading Lang (02385.HK) announced that its revenue for the six months ending on June 30, 2024 increased by about 31.1% to RMB 0.165 billion compared to the same period last year. This increase is mainly due to the increase in sales volume and price of personal tablets for students. In addition, the revenue from personal tablets for students accounts for a large proportion of the total revenue, which has also driven the overall revenue growth. The company's gross profit decreased by about 27.8% to RMB 35.1 million compared to the same period last year, and the gross margin decreased from 38.6% in the mid-term of 2023 to 21.3% in the mid-term of 2024. This decrease is mainly due to the higher amount of deferred revenue related to digital education resources and services recorded in the mid-term of 2023 compared to the mid-term of 2024. The revenue from digital education resources and services is recognized on a straight-line basis over the expected useful life.

The Reading Lang brand has become a well-known education technology brand in China. As of June 30, 2024, the company has registered over 9.3 million users, with an average of 0.73 million daily active users in the first half of the year, and an average of over 1.36 million monthly active users in the past six months. In addition, the company has established a nationwide offline distribution network with strong penetration. As of June 30, 2024, the company has signed contracts with 145 offline dealers, who control a total of 4,258 sales points in 324 cities across 31 provinces and autonomous regions of China (including municipalities directly under the Central Government).

In the first half of 2024, the company's efforts in the field of smart education have achieved significant results, with steady sales growth, proving that the company's strategic direction is correct. Faced with a constantly changing market environment and challenges, the company has further deepened the development of digital education resources and launched multiple intelligent learning devices, which have been widely welcomed in the market.

The company's "AI Love Learning Network" and "Smart Classroom" solutions have been fully deployed in 80 schools and 156 classrooms, serving more than 43,500 students and 5,567 teachers, greatly improving the quality of teaching and learning efficiency, and significantly improving students' interest and effectiveness of learning, reducing repetitive exercises by 33% and increasing learning efficiency by at least 26%. In addition, the company's Intelligent Campus solution has been adopted by more schools and educational institutions, becoming an important part of smart campus construction. By strengthening the offline distribution network and expanding online channels, the company's market coverage has significantly increased, and sales have increased by 31.1% compared to the same period last year.